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‘Self-driving’ vehicles fitted with Automated Lane Keeping System (ALKS) could be permitted on the roads later this year, in the wake of a government consultation on the safe use of the technology.

The UK government has set out how vehicles fitted with ALKS technology will be allowed to use the roads. It said it would work to facilitate a data sharing agreement between insurers and manufacturers, and to ensure manufacturers provide sufficient driver information to help them understand how to safely use automated vehicles.

A separate consultation on changes to the Highway Code to clarify rules on safe use has been launched, proposing to add a new section setting out expectations for users of automated vehicles.

Driverless cars expert Ben Gardner of Pinsent Masons, the law firm behind Out-Law, said: “The introduction of ALKS is likely to be the first of many gradual steps as we see increasing levels of autonomy in road vehicles. However, at this stage, it will not be possible for drivers to reap the full benefits of these advanced driving features as other existing driving laws will also need to be reviewed and, if deemed appropriate, amended or withdrawn altogether.

“Arguably the current speed restrictions could limit how frequently this technology is deployed and prohibitions on using handheld devices whilst at the wheel will remain in force. As a result, in the short term, drivers will not be fully released from their driving responsibilities and free to do other tasks,” Gardner said.

“However, as regulatory reviews continue and new advanced driving features come to market, we will begin to see a phased evolution of what road vehicles are technically and legally capable of doing – together with the benefits of increased productivity and, more importantly, reduced congestion and accidents,” Gardner said.

ALKS controls a vehicle’s movement without the need for driver intervention and is designed to keep a car in its motorway lane at speeds of up to 37 miles per hour – for example when there is heavy, slow-moving traffic.

The system can only be activated through a deliberate action by the driver and when the driver is in the car’s driving seat and available. It can also only be used on roads where pedestrians and cyclists are not present.

The government launched a consultation into the use of ALKS on motorways last summer and received 186 responses (45 page / 2.4MB PDF) from individuals and organisations, including from manufacturers and insurers.

Although respondents felt that drivers needed to understand ALKS capabilities and limitations to use it safely, only a minority proposed mandatory training. Respondents said manufacturers had a responsibility to ensure drivers understood how to use vehicles, and there was widespread support for a public awareness campaign to educate all road uses about ALKS.

The proposed new section in the Highway Code on automated vehicles sets out the requirements for drivers. It notes that drivers are not responsible for automated vehicles when they are driving themselves, and drivers do not need to pay attention to the road in these circumstances. However, they do need to pay attention to instructions about when it is appropriate to engage the self-driving function.

Drivers should remain in the driving seat if a vehicle is designed to require them to resume driving after being prompted to, and are still responsible for the vehicle being in a roadworthy condition.

Drivers will be permitted to perform other activities if they are using vehicles that can safely drive themselves. The government said it intended to consult later this year on amending the regulation concerning the use of screens in vehicles, and would consider changes to the use of screens by drivers of automated vehicles.

The government is also planning to commission research to scope the technical requirements needed for enabling motorway-based automated driving systems to operate at higher speeds and change lanes. By Graham Hill thanks to Pinsent Masons

Police forces have recovered more than 1,000 stolen catalytic converters and arrested more than 50 people.

The joint operation to tackle catalytic converter theft, codenamed Goldiron, was coordinated by the British Transport Police (BTP).

Police forces joined experts from the Joint Unit for Waste Crime (JUWC), led by the Environment Agency, Smartwater Group, and motor industry, to carry out synchronised enforcement action, intelligence-led site visits, forensic marking and educational events.

Over a five-day period last month, officers and partner agencies made 56 arrests, visited 926 sites, stopped 664 vehicles, recovered 1,037 stolen catalytic converters and 297 items of stolen property; and identified 244 offences.

During the visits and checks, officers searched for stolen metal and examined trader’s financial records to ensure they were complying with the 2013 Scrap Metal Dealers Act.

The JUWC also coordinated a series of waste site inspections to ensure businesses held environmental permits and met other legal requirements.

Furthermore, catalytic converter marking demonstrations were also held to educate and encourage drivers to protect their vehicles. More than 1,610 vehicles were forensically marked by officers and partner agencies.

National Police Chiefs’ Council lead for metal crime, BTP Assistant Chief Constable Charlie Doyle, said that the “positive results” are testament to why it’s vital to share information and specialist knowledge to disrupt those operating in this area of crime.

“By taking a multi-agency approach, we are maximising our ability to identify those who are involved in catalytic converter theft, making it harder for them to sell stolen metal and gain from their criminal activities,” he added.

Catalytic converters clean harmful gases before they exit a vehicle’s exhaust pipe and are stolen for the precious metal they contain. These metals have surged in value recently, leading to organised crime networks to commit more offences.

A national conference took place in November last year to create a cross-agency plan focussed on prevention and detection and this was the second week of action that has taken place since.

National Police Chiefs’ Council lead for vehicle crime, Cheshire Police Assistant Chief Constable Jenny Simms, said: “Policing and law enforcement agencies will continue to focus on catalytic converter theft and ensure that this low risk/ high-reward crime is relentlessly targeted, and offenders are brought to justice.”

The RAC and Ageas say that vehicles parked during lockdown are being targeted by criminals stealing catalytic converters for their precious metals.

There has been a “marked rise” in the theft of catalytic converters since the start of the first lockdown just over a year ago, says Ageas Insurance.

Three-in-10 of all theft claims reported are now related to catalytic converters. Before the lockdown catalytic converter theft only accounted for around one-in-five.

Toyota is working with police and Smartwater to covertly mark the catalytic converters on more than 100,000 cars in an attempt to deter thieves.

The initiative is costing the car maker more than £1m and will be provided to existing Toyota owners for free.

Police say that reports of catalytic converter theft should be made as soon as possible to increase the chances of detection.

People are encouraged to report any suspicious activity to the police by calling 101, or 999 if an offence is in progress. If you spot something at a railway station, contact BTP by texting 61016 or calling 0800 40 50 40.  By Graham Hill thanks to Fleet News

The company car market is predicted to grow significantly after new research reported a three-fold increase in drivers wanting to source their next vehicle through their employer.

The findings, from the OC&C Speedo meter ‘Battery Late Than Never’ report, also suggest that Covid-19 has helped cement the importance of a car, despite people driving less.

More than two-in-five drivers (42%) said the pandemic has increased their belief that a car is essential. It is not just drivers who see the car as essential either – the number of non-drivers who expect to own in the future has risen by 21% in the UK.

The global report was published last week and is a follow-up to a 2019 study. It tracks how trends in consumer attitudes and behaviours toward vehicles and their mobility needs have changed.

Looking at UK-specific data, it shows that just 2% of consumers expected to source their next car through their employer in 2019, but, three years later, that has risen three-fold to 6% – a 200% uplift.

COMPANY CAR MARKET

It is a positive outlook for a sector which has been in decline for the past few years. The most recent figures, published by HMRC in September 2020, showed that the number of people paying company car tax had again fallen substantially, with HMRC reporting 30,000 fewer people receiving the benefit.

The benefit-in-kind (BIK) statistics, published by HMRC, showed there were 870,000 company car drivers in 2018-19 – a massive 30,000 year-on-year decline.

The figures suggested that the number of employees receiving the benefit had fallen by some 90,000 in the past five years, from 960,000 in 2015/16.

The introduction of a new zero percentage tax rate for a pure electric company car in April 2020, along with lower rates for hybrids, however, has led many to predict a brighter future for the benefit.

The latest new car registration figures from the Society of Motor Manufacturers and Traders (SMMT) highlight the relative strength of the sector.

Almost 80,000 new company cars were registered to fleet and business in April as the market continued to show signs of recovery.

Year-to-date, 318,991 new cars have been registered to fleet and business compared to the 259,017 units registered during the same period last year, a 23% uplift.

Fleet and business registrations now account for 56% of the market, with 567,108 cars registered overall.

There were 141,583 new car registrations in April, with 79,648 new company cars registered to fleet and business.

In April 2020, at the start of the first lockdown, just 3,450 new company cars were registered.

APPETITE FOR EVs

OC&C says the proportion of drivers considering an electric vehicle (EV) is “unprecedented” and is likely to translate into a fast acceleration in EV adoption.

Globally, more than 50% of drivers considered a hybrid when they last changed their car, and more than 40% report they will consider a pure EV next time.

The UK leads the West in EVs in the survey, with 57% of UK drivers considering fully electric for their next vehicle versus 45% in Germany and the US.

In the UK, new BIK tax rates will be persuading some to make the switch to a plug-in car, but the OC&C study shows range and tech improvements (38%), concerns about the environment (39%), Government regulation changes (36%) and better availability of charge points (35%) are the main drivers for consumers.

The OC&C data reflects the experience of leasing companies, which have reported a growing number of company car drivers choosing an EV.

Tusker, for example, has a risk fleet of approximately 20,000 cars and, while just one-in-33 (3%) were pure electric in 2019, it has since increased to one-in-five (20%).

Half of the leasing company’s orders in 2020 were for pure electric cars. Hybrid vehicles, both plug-in and mild, accounted for 20% of its new vehicle orders, with petrol and diesel responsible for less than a third (30%).

In fact, zero-emissions-capable cars, including electric, hybrid and fuel cell models, now account for one-in-three of the available models in the UK, according to the SMMT.

BARRIERS TO ADOPTION

Barriers to adoption have shifted, with the OC&C report suggesting the percentage of people citing access to public charging infrastructure as an issue has fallen dramatically.

In 2019, it said that 64% of respondents in the UK saw it as a barrier to adoption; the latest study reports that it has fallen by 14 percentage points to half (50%).

An EV’s range, while still the number one concern, is also seen as less of a barrier, falling seven percentage points, from 62% to 55% over the same period.

Meanwhile, more drivers see vehicle cost as a barrier, with more than half of respondents (51%) highlighting it as issue, compared with 49% in 2019.

The cost of electricity saw the greatest swing, with more than a quarter of respondents (29%) citing it as a barrier compared with 19% in 2019 – a 10 percentage point uplift.

The Association of Fleet Professionals (AFP) says the lack of an effective national strategy for creating kerbside charging infrastructure is emerging as the biggest barrier to adoption of EVs by businesses.

OC&C’s study, however, suggests access to a charge point close to home or at the driver’s property is becoming less of an issue for UK consumers, with 39% citing it as issue in the most recent survey, compared with 44% in 2019.

The current Government approach to install kerbside charging means 75% of the cost is met by a national fund and 25% is paid by local authorities.

AFP chair Paul Hollick believes the strategy is not working. He said: “We have national fleets who are AFP members and want to go 100% EV as soon as possible. The stumbling block they face is that nationally, around four-out-of-10 people live in apartments or terraced houses and don’t have access to on-street parking.

“That means they are reliant on local authorities to install street charging facilities but, as you’d expect, the impetus and ability to do so varies massively from area to area.”

A kerbside charger costs around £2,500 to install, meaning local government needs to find £600 per unit. In the wake of the pandemic, Hollick says many simply don’t have the money, even if there is the will.

CAR CLUB POTENTIAL

Exclusive access to a car still remains vital to 82% of drivers, according to the OC&C report, with most expressing concerns around accessibility, storage and privacy as key to their reluctance to consider co-ownership or access models.

However, the importance of exclusivity is starting to wane for a forward-thinking minority, with 13% of UK drivers happy to consider mobility solutions as an alternative to having their own car, be it carsharing solutions, taxis or even short-term rental – a four percentage point increase on 2019.

OC&C says this reflects lower car usage in 2020 as a result of the pandemic, environmental and cost concerns, while the development of models such as Zip Car and Drover are also driving changes in attitude.

Consumers also continue to see a car as essential to travel, according to the report. The percentage of drivers who see a car as essential has remained stable between 80-90% since 2019.

This is true even among the young; Gen Y and Gen Z drivers still care about having cars and driving, it suggests. In fact, they have become more dependent on cars than they were. The percentage of 18-29-year-olds disagreeing that a car is essential has fallen from 11% to 5%. By Graham Hill thanks to Fleet News

Recommendations for who will be legally liable if an autonomous vehicle is involved in a collision or commits an offence are set to be published by the Law Commission before the end of the year.

The organisation has completed a consultation into the legal ramifications of the technology and is now assessing responses before making its final recommendations.

Jessica Uguccioni, lead lawyer of the Law Commission’s autonomous vehicles review, says: “One of the big things we’ve determined is that you can’t just keep the current system for enforcing road traffic rules when it comes to automated vehicles.

“At the moment you can basically lock people up if they do something really, really bad on the road, like dangerous driving, but that is just not going to work with the automated driving regime.

“We need to have a system which is much more based on ensuring safety to begin with, but then understanding why things have gone wrong and preventing them happening again because a single incident can have ramifications for many other vehicles.”

In the Law Commission’s consultation document, the organisation says different levels of automation should affect where liability lies.

If the vehicle is fully autonomous and can travel without a driver in them then any people in the vehicle are merely passengers so have no legal responsibility for the way the vehicle drives and are under no obligation to take over the driving.

Determining liability for autonomous vehicles which require a human driver to be in control of the vehicle at times is more complicated.

While there will be periods when the vehicle is fully autonomous or when it is being fully controlled by a human, there will also be times when the vehicle is transferring control to the driver.  By Graham Hill thanks to Fleet News

Car manufacturers are reducing the number of optional features offered on new models and fitting smaller wheels in order to simplify the WLTP values for each model.

Each new car registered in Europe has a unique WLTP value, which is affected by its specification.

Options that impact a vehicle’s standard weight, drag or rolling resistance can change a vehicle’s WLTP values. Additions such as a sunroof are likely to add approximately 2g/km of CO2 to a vehicle’s emissions levels and any change to a vehicle’s specification must be calculated with complete accuracy.

Jato Dynamics says as manufacturers began the transition from NEDC to WLTP, they changed the number of options available for purchase, reducing the models on offer.

Some have reduced the average tyre size of their vehicles, as smaller wheels are less likely to create as much friction or resistance.

David Krajicek, CEO at JATO Dynamics, said: “Where options were once key money-makers for OEMs, they can no longer look to these to generate cash for fear of exceeding CO2 limits, and the waste of resources that arises from calculating every single vehicle’s unique WLTP value.

“The shift away from these additional features and the evolution towards EVs will likely continue. We cannot say with certainty what manufacturers’ model listings will look like in the future, but one thing is clear – on demand WLTP data for meeting budgets, policy guidelines, and ultimately keeping businesses running will be key.”

The changes go much further than options, however. Since 2017, many OEMs have moved away from standard internal combustion engine (ICE) vehicles, in favour of lower emissions electrified vehicles.

Last year. EV registrations more than doubled in Europe. The Netherlands, France, Finland and Ireland, have all significantly increased the number of EV models available since 2017.

The Netherlands currently has the greatest number of EVs available for purchase, rising from 18 models to 50 models in the space of four years. This is closely followed by France, with an increase of 29 models during the same period.

Finland more than doubled its electrified offering from just 13 models to 29 last year. Similarly, Ireland has more than tripled its range, rising from seven to 24 models in 2020.  By Graham Hill thanks to Fleet News

I don’t think that it would surprise anybody that new car registrations were drastically down in 2020 but the interesting statistic is the split of cars. Private registrations suffered the least with the larger fleets doing slightly better but the business registrations were down 43.3% (see chart below).

However, I would suggest that whilst these figures look dreadful many customers, both corporate and consumer extended lease contracts last year and those that had to change their cars decided to go down the used car route as there was a grave lack of new car stock available.

Here is the report and breakdown of the figures for 2020:

Fleet and business registrations fell by 32% in 2020, with 400,000 fewer company cars registered compared to 2019, but fleets were behind a massive increase in the uptake of electric vehicles (EVs).

The new figures, published today by the Society of Motor Manufacturers and Traders (SMMT), show overall demand in the new car market fell to the lowest level since 1992.

They also reveal the continuing decline of diesel, with 55% fewer diesel cars registered in 2020 compared to 2019.

The SMMT sales figures show there were 883,557 cars registered to fleet and business during 2020, compared to almost 1.3 million vehicles the previous year.

However, the latest sales data also reveals that in December, fleet and business registrations were only 9% down compared to December 2019.

It suggests a recovering company car market, with 85,489 fleet and business registrations, equating to 64% market share.

Overall, the UK new car market fell by almost a third (29%) in 2020, with annual registrations dropping to 1,631,064 units.

Against a backdrop of Covid-19, the industry suffered a total turnover loss of some £20.4 billion, with private vehicle demand falling by 27% overall, amounting to a £1.9bn loss of VAT to the Exchequer, says the SMMT.

Mike Hawes, chief executive of the SMMT, says that 2020 will be seen as a “lost year” for automotive, with the sector under “pandemic-enforced shutdown” for much of the year and uncertainty over future trading conditions taking their toll.

However, he said: “With the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.

“With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with Government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy.”

Demand fell across all segments bar specialist sports, which grew by 7%, although Britain’s most popular class of car remained the supermini, retaining a 31% market share despite a 26% decline in registrations.

Meanwhile, although falling by a combined 33%, petrol and mild hybrid (MHEV) petrol cars made up 63% of registrations, while diesel and MHEV diesels, down 48%, comprised almost a fifth of the market.

Fleets adopt more electric vehicles

Battery and plug-in hybrid electric cars accounted for more than one in 10 registrations – up from around one in 30 in 2019.

Demand for battery electric vehicles (BEVs) grew by 186% to 108,205 units, while registrations of plug-in hybrids (PHEVs) rose 91% to 66,877.

Most of these registrations (68%) were for company cars. Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), says that 2020 has been a “tipping point” for EV uptake and demonstrates what can be achieved when Government works closely with fleets to develop a set of powerful grants and tax incentives and invest in a robust public charging network.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.” Poppy Welch, head of Go Ultra Low

“The latest BVRLA data shows that the fleet sector continues to lead the charge towards zero emission motoring, with battery electric vehicles responsible for 21% of company car registrations in the three months to October 2020.”

With so much uncertainty surrounding the impact of EU Exit, coronavirus and the economic downturn, Keaney says that the Government must do everything it can to support the vehicle buyers that underpin the UK’s new car market.

“With the next Budget just weeks away, the Chancellor must continue to ring-fence the long-term grants and tax incentives that make electric vehicles affordable,” he said.

“He must also resist the urge to pile more motoring tax increases on fleets and drivers that have yet to make the transition to zero emission motoring.

“Many of these businesses and individuals are struggling financially and can’t yet find an electric vehicle that meets their needs or budget.” 

More than 100 plug-in car models are now available to UK buyers, and manufacturers are scheduled to bring more than 35 to market in 2021 – more than the number of either petrol or diesel new models planned for the year.

Poppy Welch, head of Go Ultra Low, believes that in the context of the new car market, 2020 will be remembered as the breakthrough year for EVs.

“After a ninth successive year of growth in EV registrations, we’ve now seen market share rise to 10.7%,” she said.

“This has been made possible, in large part, by the Government’s ongoing support and long-term vision, combined with the automotive industry’s commitment to developing a wide range of zero-emissions vehicles that are clearly convincing the public with their performance, financial and environmental credentials.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.”

When will the market get ‘back on its feet?

Ashley Barnett, head of consultancy at Lex Autolease, said that the 29% year-on-year drop really “hammers home” just how challenging the coronavirus pandemic has been for the motor industry.

“The market will take some time to get back on its feet,” he said. “How long that is remains to be seen.”

He added: “The growth in EVs is comforting but ultimately is from an extremely low base – only 6.6% of vehicles on the roads are EVs (including PHEVs).

“All eyes will be firmly on the spring Budget and the rumoured plans for a road pricing scheme which may go some way to recoup lost tax revenue when EVs begin to overtake conventional ICE models.

“The Chancellor has an opportunity to reassure would-be EV drivers that fiscal incentives will remain on the table and incentivise them to take the first step into alternatively-fuelled vehicles.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, expects economic uncertainties to continue into the first quarter of 2021, while the pandemic dampens consumer confidence.

However, he said: “The UK’s long negotiated tariff-free trade agreement with the EU should provide a welcome boost for the motor industry to lay the foundations to support a recovery in the sector.

“Similarly, the positive trend in EV uptake demonstrates that the transition to electric will gather momentum in the months ahead heightened by the wide range of new EV models coming to market in 2021 and growing consumer demand.”

By Graham Hill thanks to Fleet News & SMMT

SUV Sales Across Europe Drop For First Time In 6 Years

The growth in demand for SUVs across Europe has slowed for the first time in six years as smaller, electrified models start to claw back sales.

Between January 2016 and January 2020, the market share of SUVs grew significantly – from 25% to 40%.

For the majority of the year, the market share of SUVs remained stable – between 40% to 41%. However, their registrations fell by 13% in November, and 21% YTD when compared to 2019.

Felipe Munoz, global analyst at JATO Dynamics, said: “The market has benefitted hugely from a wider SUV offering provided this year. But with the impact of Covid-19 still in full force, demand is no longer growing in parallel to new product launches, nor at such a fast pace.”

Conversely, B and C cars experienced declines below the overall average, in fact, their market share increased in November due to new arrivals and a more competitive electrified offering.

Overall, Europe registered 1,045,129 new cars – 13% less than for the same period in 2019. November 2020 has recorded the lowest volume since 2014, when just 989,500 units were registered.

Year-to-date figures continue to point to a downward trend, with YTD volume dropping by 26%. European consumers registered 10.71 million units between January and November – the lowest YTD figures so far this century.

Munoz added: “The global pandemic and its impact on mobility has been extremely painful for the automotive industry, indeed more painful than any other economic crisis that has hit Europe over the last two decades.”

The overall ranking by models in November confirms that the Volkswagen Golf (pictured) kept its position as the most popular car in Europe. The hatchback registered 24,800 units in November – just short of 255,000 units since January.

Only two SUVs made it into the top 10 – the Peugeot 2008, followed by the Renault Captur. Further down the ranking, Ford Puma, Volvo XC40, Audi A3, Renault Zoe, Volkswagen ID3, Kia Niro, Mercedes GLA, Skoda Kamiq, Jeep Compass, Mercedes GLB, Nissan Juke, Audi Q3 Sportback, Kia Xceed, Suzuki Ignis, and BMW 2-Series, all posted healthy results.

By Graham Hill thanks to Fleet News

The following is just one of a series of emails being sent to drivers by scammers in order to defraud them.

The Driver and Vehicle Licensing Agency (DVLA) has seen a six-fold increase in scam reports. Between July and September 2020, the DVLA received 603 per cent more reports of fraudulent emails, texts and phone calls than it did in the same period last year.

There were 3,807 reports of email scams alone – up 531 per cent from the 603 reported in the three months to September 2019. Reports of fraudulent texts, though, decreased from a 653 between July and September 2019 to 510 in the same period this year.

These fraudulent messages can ask drivers to verify their driving licence details, offer vehicle tax refunds, or highlight a failed vehicle tax payment and ask for bank details.

The DVLA has now released images of some of the most commonly reported fraudulent emails, allowing drivers to familiarise themselves with them and avoid them.

How to protect yourself against the scammers

Drivers are reminded that the only place they can access official information on the DVLA and its services is the GOV.UK website. The DVLA never asks for bank details over email and never sends text messages about vehicle tax refunds.

The DVLA also tells motorists to never share driving licence images and vehicle documents online, never share bank details or personal data online, avoid websites offering to connect to DVLA’s contact centre and only use GOV.UK when looking for DVLA contact details.

Suspicious emails and texts should be reported to the National Cyber Security Centre. You can also forward a questionable text message to your mobile network provider on 7726. Furthermore, anyone who thinks they may have been a victim of fraud should immediately contact the police via Action Fraud.

Phil Morgan, head of fraud policy investigation at the DVLA, said: “These new figures demonstrate that scammers are becoming more persistent in their efforts to target motorists.

“These more recent scams may at first seem legitimate, however they are designed to trick motorists into providing their personal details. We never ask for bank or credit card details via text message or email, so if you receive something like this, it’s a scam.”  By Graham Hill thanks to AutoExpress

The Government is being urged to work with the fleet sector to ensure any changes to motoring taxation are carried out in a timely, effective and proportionate way.

Reports suggested that the Government was considering reviving road pricing plans to counter lost tax revenues from the increasing adoption of electric vehicles (EVs).

The fleet sector has already shown it is receptive to road pricing as a replacement to other road and fuel duties. Fleet News has been calling for the Government to launch a feasibility study since its Fleet Industry Manifesto report in 2015.

The National Infrastructure Strategy, launched to coincide with the Spending Review, emphasised the need for motoring tax revenues to ‘keep pace’ with the uptake of EVs. It did not, however, mention road pricing as a potential alternative to the current regime.

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA) says any changes need to be fair to the fleet industry.

He recognises that the Government’s future motoring tax strategy must strike a “fine balance” in maintaining vital revenues and encouraging people into newer and cleaner vehicles.

But he stressed: “The Government must avoid placing a crushing tax burden on businesses and individuals that are unable to upgrade their cars, vans or trucks and are already struggling to cope with the economic implications of Covid-19 pandemic and EU exit.” 

The Government has already spent £280 billion to help support the economy through the pandemic and will spend a further £55bn next year to support the recovery.

“We will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly,” Nicholas Lyes, RAC

In total, taxes on UK motoring, including vehicle excise duty (VED), fuel duties and VAT, raise around £40bn per year or 7% of total revenue to the Exchequer. Of this, benefit-in-kind (BIK) tax payments, covering the provision of company cars, raise close to £1.8bn.

Darren Handley, head of infrastructure grants at the Office for Low Emission Vehicles (OLEV), told attendees at Virtual Fleet and Mobility Live that, while the question of future motoring taxation is one for the Treasury, it should not necessarily follow that lost fossil fuel revenues will be recouped from EV drivers.

He said: “If you look at a parallel with something like health and smoking, any reduction in tax (take) from (a reducing number of) smokers isn’t regained by taxing somebody who is healthy.”

Covid-19 impact on tax revenues

In Budget 2020, the Treasury outlined expected tax receipts from fuel duty each year up to 2024/25. It expected to collect £27.5bn this tax year, a £200m decline on £27.7bn in 2019/20. But, then it was predicted to increase to £28.1bn the following year (2021/22), before reaching £30.5bn in 2022/23, £31.2bn in 2023/24 and £31.7bn in 2024/25.

VED receipts are expected to fall by £100 million to £7bn in 2021/22, before increasing by £200m each year for the next three years, reaching £7.6bn in 2024/25.

Revenues, however, have already been impacted by Covid-19, with lockdown restrictions reducing fuel duty by £2.4bn in April and May compared with the same time last year.

Nicholas Lyes, RAC head of roads policy, said: “While not paying car tax is clearly an incentive to go fully electric at the moment, we will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly.

“If this isn’t addressed, we risk finding ourselves in a situation where petrol and diesel drivers continue to pay all the tax for using the roads which is unsustainable.”

Four-in-10 drivers believe that some form of ‘pay-per mile’ system would be fairer than the current system of fuel duty, says the RAC, while half (49%) agree that the more someone drives, the more they should pay in tax.

Insurance and Mobility Solutions (IMS), which is part of Trak Global Group, has successfully piloted road pricing projects in several US states.

Dr Ben Miners, chief innovation officer for IMS, explained: “Road user charging (RUC) and electronic toll collection (ETC) are both important solutions to fairly generate revenue from road users.”

ETC focuses on specific concessions or fixed points with a roadside/infrastructure approach, whereas RUC focuses on the broader transportation network with an infrastructure-free, wireless infrastructure, process.

Miners said: “The additional flexibility of RUC enables new virtual tolls to be introduced and transform any road segment or fixed asset into a ‘tolled’ road, which eliminates lengthy construction times and shortens time-to-market.”  By Graham Hill thanks to Fleet News

Civic slipping down the table leaves German cars occupying the top six places, reports Matt de Prez

The Audi A4 has retained its crown as the FN50’s most reliable car for the second year running, achieving the lowest number of mechanical breakdowns and warranty repairs among the UK’s 50 largest leasing companies.

It rose to victory last year – where it topped the charts for the first time – fending off its keenest rival, the BMW 3 Series, although BMW remains the UK’s most reliable car maufacturer.

In total, 80 models received a ranking by leasing companies in the 2020 listing.

Having launched in 2015, the A4 received a mild-facelift last year – bringing cleaner mild-hybrid engines and revised infotainment.

An all-new 3 Series launched in the same year, however, beating the A4 in the 2020 Fleet News Awards to win both the Best Premium Car and Best New Company Car trophies.

Whether the new model will enable the brand to reclaim its position at the top of the FN50, as it did between 2015-2017, remains to be seen.

Comparing this year’s figures with the previous shows a major move for the Honda Civic. It topped the chart in 2018 before slipping to fifth place last year. In 2020, the Civic has dropped again and now sits in seventh position.

Golf’s strong performance

It means the top six is populated entirely by German cars this year, with third place occupied by the Volkswagen Golf.

It’s a strong performance for the model, which is the best-selling fleet car in the UK and was replaced by an all-new model earlier this year.

The Golf pushed BMW’s 5 Series down to equal fifth place with the Audi A3 – also replaced by an all-new model this year – which climbs the chart from 11th and makes Audi and BMW the only brands to have two cars in the top five.

Mercedes-Benz enters the table in fourth place, with its C-Class model ranking in the top 10 for the first time since 2016.

It’s second entrant, the E-Class, has also climbed the table from ninth to eighth place this year – having placed 13th in 2018 – a good result that reflects the saturation of the newer generation car among leasing company fleets since it launched in 2016.

Hyundai makes an appearance in equal ninth position, with the i30 giving the brand a spot in the top 10 list for the first time.

Rounding off the top 10 is the ageing, but the nonetheless exceedingly popular, Nissan Qashqai.

It ties with the i30 in ninth place after a one-year hiatus and is the only model representing the crossover segment in this year’s top 10.

Both the Volkswagen Passat and Škoda Octavia dropped out of the table this year, placing 12th and 15th respectively.

The Audi A1 (23rd), Toyota Yaris (40th), Toyota CH-R (28th), Kia Sportage (33rd) and Ford Focus (16th) have all slipped out of the top 15 this year, although it should be noted that the margins between many of the models are very small.

While BMW failed to top the reliability ranking with its 3 Series, and the 5 Series lost ground this year, it still retained its title as the Most Reliable Manufacturer overall.

The Munich giant remains undefeated for six years.

Leasing companies ranked 27 models this year. Audi has held on to its number two spot this year with a strong performance from its A4 and A3 models, while Mercedes-Benz and Volkswagen sit third and fourth, respectively.

Honda has dropped from fifth to eight place this year, while Toyota – which saw improved positions for the Aygo (17th) and Prius (23rd) versus 2019 – has crept up one position to secure the final place in the top five.

Hyundai places sixth, while Volvo shoots up the table, occupying its highest ever position: seventh.

Volvo’s performance reflects its dramatic growth in the fleet sector, with strong year-on-year increases in registrations growing the presence of its vehicles on FN50 fleets.

Seat takes ninth place and is the VW Group’s third most-reliable brand, according to the FN50 survey.

Mitsubishi climbs two places, meanwhile, and occupies 10th position.

Kia drops out of the top 10 to 13th, having placed ninth in 2019 with the Ceed now its top rated model, in 18th place. Equally, Ford has dropped from 10th to 14th and has no cars in the top 15 reliability list (although Focus just misses out in 16th place).

Renault turning a corner

Renault may be happier, appearing in the top 15 for the first time.

The French brand appears to be turning a corner, with the Captur rising to 12th and both Mégane and Kadjar receiving a ranking.

This year’s newcomers mean that Mini (16th) and Vauxhall (19th) have been pushed from the top 15 list altogether.

How are models/brands ranked?

Each FN50 leasing company provides its top 10 most reliable models and most reliable brands and the ranking is based on 10 points for first place, nine for second and so on.

Some leasing companies also provide reliability data to add robustness to the survey responses. By Graham Hill thanks to Fleet News